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Importance of Tourism to the World Economy

Tourism refers to people travelling within their own countries or from different countries and staying in places outside their typical environment for various purposes. These purposes may include; leisure; this is whereby tourists travel to get away from their familiar territory for relaxation; business; this is where tourists travel for work-related purposes. This movement could result from meetings being held in different countries or cities.

A tourist destination solely depends on the reason for travel. It could be a country, region, state or an area with an attraction site. Tourism can either be domestic, whereby the people travel locally or international, whereby tourists travel from one country. Many people have recently embraced tourism positively, making it one of the largest and fastest-growing industries worldwide. It has, in turn, prompted tons of benefits to the economy.

Tourism helps in growing the economy of host countries. It is evident in the fact that the profits made from tourism can be used to expand the economic units related to tourism such as; transportation accommodation by building more hotels and food and beverage by paying suppliers. The countries can even utilize it in the state budget to pay fees and taxes.

Tourism generates employment. It can be both directly and indirectly. Directly can be well demonstrated by the hotel industry. Most tourists tend to stay in hotels when they visit a particular place. Hotels, therefore, employ staff who aid in ensuring the customer’s expectation is met. Indirectly touches on the travel agents that connect tourists to hotels and various destinations of their choice while in a different country. It also helps the local community in that they can set up shops to sell their commodities to the tourists.

Tourism boosts the export of local commodities. Tourists tend to invest more in buying gifts for loved ones, clothing or even souvenirs to remind them of the places they visited. Most tourist destinations have set up markets to sell local products. It, in turn, provides a source of income for the local community and creates a one-of-a-kind shopping experience for tourists.

Tourism leads to the growth of infrastructure. The tourism industry requires a lot of facilities to ensure customer expectations are met accordingly. Therefore, this results in the development of roads to ensure the tourists reach their destinations effectively, communication networks to ensure they keep in contact with their loved ones and even playgrounds that will entertain their children.

Tourism provides educational value. Tourists learn many things when visiting a place. Be it new cultures, local dishes or even about exotic animals. They encounter different experiences than they are used to in their usual environment. It can also broaden their ways of thinking in that when you are in a new environment; you tend to be more open-minded hence have a different perspective of things. It, therefore, enables a country to have educated, creative, healthy and happier people who are in turn more productive.

In conclusion, tourism is a very productive sector for both the host countries and the tourists. Hence, host countries should consider improving their conditions as more and more tourists visit their countries. Tourism has an essential role in the development of any country’s economy.


Bădescu, A. (2012), ‘Expunerea rețelei hoteliere din stațiunea Mamaia în spațiul virtual – studiu exploratoriu’, Etnosfera, 13(3), 24-57.

Bergstorm, J., Yu, L., and Medweth, E. (1994), ‘Destination Maintenance: Why Sedona Needs Schnebly Hill’, Cornell Hotel and Restaurant Administration Quarterly, 32.


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